EU to lower price cap on Russian oil from $47.60/bbl to $44.10/bbl on Feb 1, plans to review every six months

MOSCOW. Jan 15 (Interfax) - The European Union will lower the price cap on Russian oil above which EU companies are prohibited from being involved in its transportation and providing associated services from $47.60 per barrel to $44.10 as of February 1, a decision posted on the Council of the EU website showed.

The price cap was initially set at $60 in December 2022, but slashed to $47.60 on September 3, 2025.

The EU explains that it has implemented a dynamic price adjustment procedure for Russian oil within the price cap.

The new procedure ensures that the maximum price will always be 15% lower than the average market price of Urals crude oil over the previous reporting period of 22 weeks. As noted, the EC plans to review the price cap every six months, though extraordinary revisions are possible if developments on the oil markets or other unforeseen circumstances substantiate a revision.

The United Kingdom has joined the new price cap requirements. The corresponding announcement appeared during the day on the UK government website. "Crude oil contracts signed at the previous cap of $47.60 before 23:01 on 31 January 2026 will be subject to a wind down period; these contracts may be fulfilled provided that the oil is offloaded at the port of destination by 22:59 on 16 April 2026," the message said.

Russia prohibits the sale of oil under contracts that comply with the price cap.